This invention relates to a method and apparatus for quickly calculating the break-even point of any enterprise.
All enterprises, private businesses or corporations, regardless of size, need to know periodically their break-even point, i.e., the volume of business at which sums of money received from the business equal fixed and variable costs. To calculate the break-even point, a formula is traditionally employed, such as one set forth hereinafter. Such an equation may be solved in most cases in a few minutes (less than ten minutes).
It is also customary to plot the break-even point and anticipated profits for different volumes of business in order to determine the minimum volume of profitable business, and the optimum level of profitability. Since each point requires a few minutes to calculate, this can require up to 40 to 50 minutes, or more, in the usual case. It would be desirable to reduce the time to calculate each break-even point to less than a minute.